Jefferies Reiterates Buy on Broadcom, $500 Price Target

Jefferies analyst Blayne Curtis reiterated a Buy rating and $500.00 price target on Broadcom Limited (NASDAQ: AVGO).

“The two overhangs on AVGO are the sustainability of AI spend and COT disruption.

Clearly the Google capex guide offers a significant vote of confidence for AI spend moving higher, but you also have news of capital raising progress from the other players such as OAI, xAI, and Oracle.

On the COT front, our call is that AVGO is well ahead of MTK on v8 and will be even further ahead with v9 from both a timing and capability perspective.

AVGO and MTK are working on two different SKUs (AVGO v8ax and MTK v8x) and we believe most, if not all, of the demand will be for the higher performance AVGO chip, similar to what happened with v6e vs v7x.

Our bottom-up model has 6M units total for Google in C27 with 85-90% going to AVGO and we see room for that overall number to move up further.

Networking also continues to push higher, potentially even outpacing ASICs in the quarter given the TH6 ramp, DSP share gains, and China strength.

We reiterate AVGO as our Top Pick and expect the results will speak for themselves.”

This research note is reproduced verbatim from the issuing firm. Price Target never edits, paraphrases or alters analysts’ words — we only republish them in one place.